The Courier Industry and Regulation

Recent development on government agencies and departments regulating their counterparts across different sectors of the economy heightened recently as Nigerian International Air Couriers Association (NIACA) and Association of Nigeria Courier Operators (ANCO) at a joint press conference appealed to Federal Government and relevance authorities to intervene by revoking the act mandating NIPOST to act as courier and postal industry regulator.

Investigation revealed that outdoor advertising practitioners in Lagos once alleged that Lagos State Signage and Advertising Agency (LASAA), which ought to be an industry regulator is being managed by a competitor, Mr. Makanjuola Alabi, chief executive officer of LASAA, who is touted to be the owner of Altmedia, one of the frontline outdoor contractors in Lagos State.

The same controversy however, has resurfaced in courier and logistics industry, where operators under the aegis of Niaca and Anco, is advocating a paradigm shift from the status quo that gives Nipost the authority to regulate and sanction competition.

At the meeting attended by the industry players, the purpose for the meeting was to update the media on developments relating to a bill for an act to provide for the Operation and Development of Postal Service, the establishment of the Nigerian Postal Commission and Other Related Matters in the past year.

Some of the developments, according to Toyin Olufade, Anco president include the act that mandates NIPOST to regulate the industry, multiple taxation on the players particularly private sector players, funding of the commission, licensing regime, composition of the governing board, distinction between courier service and postal service and the contribution of Universal Postal Service fund amongst others.

Speaking on some of the issues seriously affecting the industry, Dipo Akinyele, Chairman of Niaca said, 'while we await the outcome of the deliberations of the Honourable House of Representative Committee on Communications, we would like to seize this opportunity to draw the attention of the general public to the impact of certain aspects of the Bill on the courier express industry.

Like what is obtainable in other industries such as advertising, telecommunications, research and oil and gas where government set up an independent agency to regulate a specify industry, Niaca and Anco welcome the establishment of an independent regulatory body to be known as the Nigerian Postal Commission (NPC) which would take the powers of a regulator from Nipost with the group represented in the governing board.

Akinyele said "The services offered by Courier Express companies differ from those of postal operators, consequently different rules should apply to their operations. Our focus is entirely on time sensitive and time definite services."

The issue of licensing regime was equally emphasised. The group frowned at the current licensees operating under the Nipost Act. Akinyele stated that "Licensees hitherto operating under the Nipost Act are required to apply for new licenses. This portends a grave commercial risk to existing license holders and our recommendation is that where a license is valid, legal and still subsisting; it should be persevered until the expiration of the license and should be eligible for renewal. Whilst the Bill recognizes the benefit of multiple courier express operators there is no provision for the existence of multiple postal operators" he emphasized.

Discordant voices have trailed the activities of Nipost which regulates while offering same services as industry operators.

Concern was also raised over the UPS fund under section 82 (2) b, which contribution would be made by licensee based on the annual turnover paid by licensees, to be determined by the NPC.

 
The group said, "both Niaca and Anco are not opposed to the establishment of the UPS fund, however the contributory request made on the licensees would further increase the financial burden of licensees and make the operating terrain more difficult for existing operators and new entrants."

They also raised concern over some adverse marketing effect has the result of the current rules governing the business and emphasis that relevance authorities particularly national assembles intervene by enacting laws that would throw up a conducive and friendly business environment that would be mutually beneficial to the operator/consumers and government.

However, it looks like the days of Nipost strategic positioning of a player and a regulator is fast winding up going by the horse-trading embarked upon by the concern industry groups.